What Is A RELO Property?

Question

I am thinking about transferring within my company to another city. I have heard of RELO properties before but I do not know what they are. What is a RELO property?

Answer

The term RELO is short for relocation. A RELO property is a property that is owned by a 3rd party relocation company, or RELO company. The owner has been transferred to a new location and the employer has made arrangements to buy the property from them. This service is used to make the transition less stressful for the employee. Relocation buyouts are usually reserved for higher level executives. Unfortunately, I would not expect a RELO buyout if you are working on the assembly line.
In a relocation transaction there are two deeds. There is one from the employee to the RELO company and another from the RELO company to the new buyer. The property is maintained by the RELO company until the new buyer closes escrow and takes possession.

Check With HR At Your Company For And RELO Package Benefits

The trend for relocation assistance to employees has been on the decline for some years as companies across the board have pulled back on their employee benefit packages. We are seeing less and less RELO properties on the market now. In most cases the RELO buyout option is reserved for the higher level executives only now. In a bad economy with declining property values some companies just pull the option all together. They do not want to be stuck with properties in a declining market. A company now has to be worried about hedging their losses now.
You should check with your company’s HR department to see if the option is available to you. You may also check to to see if your company offers any type of down payment assistance programs. In some cases your company may offer to pay your closing costs and up to one origination point. The origination point can be used to get a lower rate.

Contact A Relocation Department Of A Real Estate Company In The New City
If you contact the RELO department of some of the real estate companies in the city where you are looking to move. You may find that they have some very good home purchase deals from other folks who have their homes on the market because they moved.